To Share Or Not To Share IP: That Is The Question

The tech industry has shifted to an ecosystem-based form of competition, featuring the emergence of extensive, interfirm structures like value networks and open source development communities. Competitive success, management energy, and financial rewards help sustain the coherence of these competitive ecosystems. Increasingly, the sharing of intellectual property (IP) is both the fuel for and a sign of competing ecosystems: fuel, because IP sharing can jump-start and enhance profitability of partnerships; a sign, because customers use IP sharing as a test of true ecosystem intimacy and long-term viability. Three archetypal forms of IP sharing have emerged: 1) offensive IP sharing, exemplified by IBM; 2) targeted IP sharing, exemplified by Microsoft; and 3) defensive IP sharing, exemplified by SAP. Understanding the SWOT of each form, in the specific context of your industry, is critical to planning — and driving — your corporate strategy.